AMERICAN SAVINGS BANK BUSINESS LEADER OF THE YEAR FINALISTS

How the concept of leadership has changed and how it will continue to evolve: Throughout history, leaders often had information that no one else had. Decisions were made, often based on covert information, and the masses blindly followed. As communication evolved and availability of information spread over the masses, it was no longer true that only leaders had access to information. Thus, leadership today is more open with more stakeholders aware of the information and issues surrounding the direction of an organization and the issues/decisions at hand. In addition, more information is available to the public, with analysis and editorials on the information, which often provides many viewpoints on a subject, at times contrary to a leader’s thinking and fodder for the opposition. As change is inevitable, leadership will continue to evolve as social networking and the speed of communication becomes faster and more available. What part of my career I would rewrite: It would be to be more aggressive, during the good AND bad times. During good times, it is often easy to sit back on your laurels and accept that your growth is “good enough,” your profitability is “good enough” and what you are doing is “good enough.” This also holds true for the bad times. During economic downturns, it is easy to believe the good excuses on why the business isn’t doing well. It is often easy to blame the recession, financial crises, economic uncertainty, and other well-known excuses to be the cause for mediocre result. Again, we struggle during the tough times and settle for a performance that we consider “good enough,” given all the adversity!My father taught me early on, “During the good times, prepare for the bad, and during the bad times, prepare for the good.” As it did decades ago, this adage continues to ring true. It means, don’t get too fat and happy during the good times and don’t get too lean during the bad times. The most difficult aspect of being a business leader in Hawaii: Dealing with the overall cost of business. Costs include everything from freight [ocean and overland on the Mainland], surcharges, property costs, taxes, and government regulations. These costs not only include the dollar amount that you’re paying out, but the human resources cost and expenses to manage these costs and changing rules and regulations.The most important leadership lesson I ever received: As my father taught me early on, “During the good times, prepare for the bad, and during the bad times, prepare for the good.” This type of thinking requires flexibility, an openess to change and new ideas to adjust to the rise and fall of the economic cycle.The biggest obligation business leaders have beyond running successful companies: Run a successful company first. Not only do your employees and vendors depend on you for their livelihood, their families also count on a dependable income from a healthy business. In addition to your employees and vendors, your customers also rely upon you for the goods and services that you provide. The second biggest obligation is to your community and those that keep you successful. As an island community, your success is based on the support that your customers provide, and thus it is very important to help those that help you. The biggest problem facing Hawaii and what business leaders should be doing to help solve it: Some of the biggest problems facing Hawaii include our dependence on the federal government and a public education system that needs to meet the demands of future jobs.I believe the new structure of the Board of Education is addressing how we can educate our young people to have the skills that will prepare them for the future. As in the past, skills used today may not be the skills required for the future. Thus, a forward-thinking educational system is needed to keep Hawaii’s work force competitive.As for the dependence on federal spending, we need to continue to work on diversifying our economy. Many leaders have tried to increase activity in other segments of our economy, such as medical, agriculture, textiles, forestry, biotech, technology, and a number of other fields, all with limited success. Business needs to work with government to seek solutions that lessen our dependency on federal spending. The toughest business decision I ever made: Not freezing wages and laying anyone off after Sept. 11. We continued to pay annual increases and did not reduce our labor force during a very uncertain and unprofitable period. Many businesses laid off people and most of them froze wages. During this uncertain time, sales and profitability dropped overnight. To carry a full payroll during these tough times, not knowing when the recovery would occur, truly tested my resolve in taking care of all of our team members as long as I could. These were the bad times, but I knew that if we could get through these times, I would have an excellent work force that could help us recover faster than anyone else in the community. This turned out to be true as the recovery took hold and sales and profitability returned quicker than I expected. This decision repeated itself more recently during with the economic downturn beginning in 2008; again, we did not freeze wages or lay anyone off.My favorite place to eat lunch: I had to list three places, as they are all favorites. Zippy’s, Bale and Golden Duck on King Street.

How the concept of leadership has changed, and how it will continue to evolve: Having been in management and leadership roles since I was 25 [well over 30 years ago], it is very interesting to see the changes. Initially the expected style was very authoritative and top-down — very singular, solitary decision-making — then demanding implementation with a “yes ma’am” or “yes sir” attitude by all staff. Leaders succeeded or failed — alone — because of their decisions. Now, there seems to be a very collaborative style that has become at once less “lonely at the top” and more “CYA” at the same time. While I like the fact that it lifts a bit of responsibility off one’s shoulders, and it does spread the blame, it certainly cannot be the only leadership style utilized by a well-rounded, effective leader.What part of my career I would rewrite: If I could rewrite any part of my career, I wouldn’t erase any of my mistakes, except one. When I was completing a three-year project setting up U.S. operations in Australia, New Zealand and Indonesia for an international staffing company, and not sure at all where my next promotion or job would be, I received a long-distance call from my boss at U.S. headquarters asking me, out of the blue, “Do you speak French?” To which I replied, in French, “Oui, un petit peu!” And he said, “Oh, about like me?” And I said, “I suppose so!” and laughed. He said, “OK, thanks, I’ll be in touch.”Nothing happened for about a week, when I was talking to a colleague at U.S. headquarters and I asked if she knew anything about that call — to which she replied, “Yes, he wanted to know if you could move to Paris for a year or so to get a new management team in place — what did you tell him?”Moral of the story: At that time, I spoke French very well, and could also read and write it, but I failed to take his call seriously and was a bit too humble. Big, big mistake!The biggest problem facing Hawaii and what business leaders should be doing to help solve it: The biggest problem facing Hawaii from my perspective is its talent gap, which cripples business and prevents it from growing. Also, the talent gap, I think, affects the demographics in Hawaii to the degree that we are not an informed and educated electorate.Business leaders need to be aware of the changing demands for talent at the earliest stages of change so they can be proactive vs. reactive. The best talent gets hired very, very fast and Hawaii business leaders need to be more aware and involved in their HR department’s challenges. CEOs should ensure that hiring managers work more closely with their HR departments to attract the best talent.Business leaders need to develop mentorship and training programs for their top performers in order to move them to the next level.Business leaders need to be more open and consider someone willing to move here from the Mainland. If the talent isn’t here, you need to bring it in or develop it.Make sure your business treats attracting and retaining its talent as importantly as it treats attracting and retaining its customers. It’s the CEO’s job, too, not just HR’s job.

How the concept of leadership has changed and how it will continue to evolve: Transparency is a critical component of leadership in today’s world. Accountability and reliability not only towards the people someone leads, but also towards the planet and the community translates to leaders worth following. What part of my career I would rewrite: I am very happy with the career path I have been down since I graduated from USC in 1994. If I had to rewrite one part, I would have put in the extra effort to attend Stanford or Harvard for a joint JD/MBA program. It is not too late and still a dream of mine. I might even have a better chance of entering the program at a more mature age and career path I have been traveling down.The most difficult aspect of being a business leader in Hawaii: Finding the right balance between leading and running a business, giving back to the community we live in, spending time with family, and allotting enough time for yourself to remain healthy, creative, and energetic to effectively lead.The most important leadership lesson I ever received: You must lead by example, empower your team, and be a great communicator to be effective and successful.The biggest obligation business leaders have beyond running successful companies: Giving back to the community we live in and serving our community and nonprofits on a volunteer basis.The biggest problem facing Hawaii and what business leaders should be doing to help solve it: The laws and regulations that employers in Hawaii are faced with make it a very difficult state to do business in. Our government and state should be helping facilitate small-business growth and making it easier to do business in Hawaii.The toughest business decision I ever made: At the age of 29, I was appointed CEO of Marc Hotels & Resorts. Upon taking the position, my first and most difficult moment in business was to terminate the current top executive and entire sales and marketing team to facilitate the rebranding of the company. My favorite place to eat lunch: From our new penthouse office, overlooking the ocean and the downtown skyscape, buying lunch from one of our clients, and having lunch with one of our clients or one of our great team members.– Matt Delaney

How the concept of leadership has changed and how it will continue to evolve: I believe that leadership in the modern area combines intelligence, knowledge of not only your industry but affiliated industries, flexibility, humility, the ability to listen to peers and members of your team, and a constant desire to learn and stay abreast of current events locally and nationally.This may not have been the case in the past, especially with health care. Leaders could almost operate in a vacuum and focus on their individual “silo” of health care. The modern-day leader in health care must understand the entire continuum of care, from prevention and wellness education to end-of-life care. Only then is a leader capable of making decisions that will improve not only the success of health-care business operations but also the outcomes of the patients their organization serves. What part of my career I would rewrite: If I had it to do all over again I would have gained some international experience in health-care policy. Although I believe we have made some recent strides in the U.S., I believe we can learn a lot from other countries about the provision of health care.The most difficult aspect of being a business leader in Hawaii: The most difficult thing is supposed to be building relationships when you come from the Mainland. But I came here with the knowledge that one of the best ways to build any relationship is to be honest, humble, open and willing to listen and learn from those you engage in conversation or business with. Whenever I have had the honor to meet other business people or leaders in the community I try to be thankful of their time and acknowledge that while I may bring a certain perspective from my experience, I have a lot to learn about this great state, its history and how things “really get done.” And I am always honored when someone will share his or her wisdom with me.The most important leadership lesson I have received: To admit what you don’t know and to put a team in place around you that you trust and makes up for the areas where you lack expertise. That’s more than one lesson but they work hand in hand.The biggest obligation business leaders have beyond running successful companies: I think that business leaders have to give back to the community and also think about the environment where they ply their trade — especially in Hawaii where land is at a premium and family is everything. We are all connected in Hawaii — there are no six degrees of separation — it’s more like one degree or maybe a half a degree.The biggest problem facing Hawaii and what business leaders should be doing to help solve it: I think one of the biggest problems from a health-care perspective is our aging work force and declining number of physicians and skilled workers. These issues are even more challenging on our Neighbor Islands. This affects not only the health-care community but also the business community because employees of all kinds need access to health care to remain healthy — an unhealthy work force is an unproductive work force. Business leaders in Hawaii must address this issue by actively recruiting from the grass-roots level and from the Mainland. The toughest business decision I ever made: The most difficult decisions I have made as a business leader have involved taking on legislative challenges that were complicated — but have resulted in a better health-care environment for the organizations I have represented and the patients they serve. My favorite place to eat lunch: I would say that one of my favorites is Mariposa — great view, great food and open air. But I also like the simplicity of Kua Aina — I always break my diet when I go there!– George Greene

Kenneth Zeri

President and CPO, Hospice Hawaii

Nonprofit hospice-care provider

Address: 860 Iwilei Road, Honolulu, HI 96817

Phone: (808) 924-9255

Email: kzeri@hospicehawaii.org

How the concept of leadership has changed and how it will continue to evolve: As my career has advanced from visiting patients and families as a nurse case manager to my current position as president of Hospice Hawaii, my concept of leadership has also evolved in a few very critical ways.First, my scope of leadership responsibility has expanded tremendously, from leading a single family to care for their terminally ill loved one right up to the time of death, to leading others out of a concern for whole populations of people. This past year I was elected as a national director to the National Hospice and Palliative Care Organization board of directors. Now I must be concerned about the small hospices serving rural communities, from Molokai to a remote county in Wyoming, and I must work to influence national policy to assure that those communities have access to quality hospice care. Secondly, over the years I have been integrating the concepts of “servant leadership” and “collective wisdom” into my approach to working with our team. Being mission-driven at Hospice Hawaii, I am constantly reminded that my leadership and that of our management team must be aimed at supporting and guiding our staff to be the very best possible, so that those terminally ill individuals and their families will have the best care that humankind can offer. What part of my career I would rewrite: It is hard to look back on a career that has been so professionally and personally fulfilling, but as I do, I think I would have sought out opportunities to develop a stronger entrepreneurial spirit. The most difficult aspect of being a business leader in Hawaii: Business leadership in Hawaii is a two-edged sword. The very best aspect of being a business leader is that the community is small. As business leaders, we are all no more than a few “degrees of separation” from each other. We can make connections so quickly here and accomplish collaborative goals far more readily than other, larger communities. And the same small leadership community is the most difficult aspect. We must struggle to set aside competitive urges or holding grudges because they ultimately will bring us all down. I have learned that our respect for each other and our shared interdependence is so vital to our success, especially as we are isolated in the middle of the Pacific.The most important leadership lesson I have received: The most important leadership lesson I have learned is one of living with genuine humility. I think it takes a fairly strong ego to rise to leadership levels. One must be willing to proclaim a vision and rally others around that shared vision in support of it. But the ego can also be an Achilles heel. Thankfully, I have had co-workers and coaches who had the strength to say to my face, “Ken, it isn’t always about you!” The biggest obligation business leaders have beyond running successful companies: To create a sustainable and thriving community for our children and their children — for everyone’s children. The biggest problem facing Hawaii and what business leaders should be doing to help solve it: There are a multitude of short-term and middle-term problems we will constantly deal with such as the cyclic employment rate, rail, infrastructure of our island community, but I feel that business leaders must be the visionary leaders of our community and look to the problems the next generations will need solutions put in place now.I think the biggest problem business leaders face is creating the work force for tomorrow — our replacements. The toughest business decision I ever made: My most difficult business decision has been to ask for the resignation of an employee. Love and compassion are very important words to describe how our team at Hospice Hawaii should approach each family in our care. And that must be how we approach each of our staff as leaders. Yet, I had to learn that while I felt that compassion prompted me to not ask staff members to leave, I was actually prolonging the suffering that comes with not doing a job well, and knowing it. My favorite place to eat lunch: Waialae Country Club. I am not a member, and when I do have a chance to eat there it is usually with another business leader friend. –Kenneth Zeri

How our company has changed since it came out of the Great Recession: We have come out of the recession a little leaner and more diverse then we were prior to 2008. Where we once focused on two or three products we now focus on five to six. Nearly all of our projects now have some element of sustainable living. The biggest challenge our business has faced this year that we did not anticipate: Projects starting slower than anticipated, reducing annual revenue projections. Also, staffing our more diverse product line has been a challenge. The biggest challenge facing Hawaii’s large businesses: Maintaining and managing overhead costs in line with revenue. The toughest challenge facing our business: The toughest challenge in our business is what it has always been — managing human resources and effectively communicating the company’s expectations and core mission. Our company’s biggest opportunity: Our biggest opportunities come when we get in early in the design process, whether they be negotiated, design build, design assist, or development projects.How our competition has changed: Because we have become more diverse we are facing new competition. We have also seen Mainland contractors entering our market.How we turn disgruntled employees into productive workers: Lack of appreciation is the most common cause for employees who have become disgruntled. In order to turn a disgruntled employee around you need to have open and frank dialogue and be willing to accept criticism from the employee. The simple act of sincere appreciation and listening is often all it takes. –James Keller

How our company has changed since it came out of the Great Recession: The Great Recession confirmed that our commitment to dual strategies of 1) investing to secure work in new geographic markets and 2) diversifying our services are both critical to grow the firm.The biggest challenge our business has faced this year that we did not anticipate: The large multinational firms chasing smaller projects they were previously not as interested in, which has forced us to increase our marketing and sharpen our operations.The biggest challenge facing Hawaii’s large businesses: Living on the most remote land mass, it’s nice to be a monopoly but tough to increase market share when the pie doesn’t grow.The toughest challenge facing our business: Travel costs, since we have eight offices ranging from Oahu to Saudi Arabia.Our company’s biggest opportunity: Saudi Arabia. The king is spending $2 trillion over next five years for infrastructure.How our competition has changed: Everyone is much more aggressive; the game is getting faster and faster.Will 2013 be better, worse or about the same for our company compared to 2012? In 2012, we took the company to the brink with massive marketing investments in several geographic markets and we believe 2013 will be a great turning point for our firm.How we turn disgruntled employees into productive workers: Continually change the work environment. Make the office different and inspirational — paint the walls in multicolor and create a gallery, for example — and keep changing, changing, changing to wow them as much as humanly possible. Identify positive leaders and encourage as much interoffice interaction as possible. Hopefully the majority will be positive and help nurture the disgruntled ones back to being positive workers. Offering all employees professional development opportunities that might spark an interest; allowing them to delve into what they enjoy the most. – Frank Lyon, Jim Lyon

Martin & MacArthur

Manufacturer and retailer

CEO: Michael Tam

Address: 1815 Kahai St., Honolulu, HI 96819

Phone: (808) 845-6688

Email: Michael@martinandmacarthur.com

How our company has changed since it came out of the Great Recession: We reinvented Martin & MacArthur during the recession. Martin & MacArthur now stands for a lifestyle of gracious Hawaiian living, instead of simply being a furniture retailer. We focused on creating innovative koa-based lifestyle accessories that the world has never seen. We fiercely seek the finest products created by Hawaii’s craftsmen, in the categories that fit our concept. We are dedicated to elevating the retail experience to be cleaner, simpler, less cluttered, and more focused on distinctive, exclusive items. We expanded our store locations from two to 11 during the middle of the recession. We focused on finding the very best locations in the finest shopping districts and resorts throughout Hawaii. We built our first store in Kauai. We built our first store on the Big Island. We created partnerships with the finest hoteliers in Hawaii. We created a broad-based partnership to plant more koa trees on the Big Island with Hawaii Legacy Hardwoods. In the past four years, we aggressively expanded the number of full-time craftsmen working in our own furniture workshop from 15 to over 30 today. At the same time, we increased our retail staff from 12 associates to over 70.The biggest challenge our business has faced this year that we did not anticipate: The biggest challenge we have faced this year is the shortage of professional sales associates who fully embody the warm aloha spirit and articulate with confidence the wonderful attributes of our handcrafted products. We are not looking for cashiers; we are looking for brand ambassadors who are passionate about finely crafted koa products. We are constantly training current associates about the craftsmen we represent and what makes their works so special. The biggest challenge facing Hawaii’s large businesses: To keep a competitive edge and continue nonstop innovation. Hawaii businesses need to incessantly create new, better products and services. If it worked last year, replace it with something better this year. Don’t ever do the same thing again and expect to grow sales. Intel founder Andy Grove once said, “Only the paranoid survive.” I agree with Andy.The toughest challenge facing our business: It’s easy to get lulled into complacency. After all, we live in paradise. But, as we grow, I want to be sure that every person on our team continues to feel accountability for our overall success. We need to be sure we continue to act like one family and not merely employees or vendors. Frankly, the Hawaii craftsmen who create products for us are as much a part of our family as the craftsmen in our own workshop. We are all partners in the success of Martin & MacArthur. We need to work to be sure that all of our associates and craftsmen feel that way. Then, the future will be bright.Our company’s biggest opportunity: The biggest opportunity is in new products that continue to revolutionize the way people think about koa. By staying on the cutting edge of innovation, we will continue to have products that delight our customers and keep them coming back.How our competition has changed: Our competitive set is always changing because we are constantly creating new products that compete in different categories. The koa personal accessories that we’ve introduced were not even invented four years ago. Will 2013 be better, worse or about the same for our company compared to 2012? For Martin & MacArthur, 2013 will be even better than 2012. The new strategies and products we have planned will deliver strong results and keep us moving swiftly ahead. How we turn disgruntled employees into productive workers: Disgruntled employees can be transformed into brand ambassadors by first treating them with respect and understanding their issues. We need to be sure that everyone receives the training needed to do a good job. Performance expectations need to be clearly explained and measurable. Next, we need to focus on addressing any issues and informing employees of the outcomes. Finally, we need to be sure that employees are rewarded for doing a fine job. –Michael Tam

How our company has changed since it came out of the Great Recession: Having embedded continuous change as part of our thinking and operations, all of the changes that occurred prior to 2008-2009 served SSFM very well in weathering the Great Recession. We have continued to identify and retain high-level senior management within the company, continued to invest in technology as tools to increase productivity and to improve both internal and external communications, and increased our commitment to both customer service and employee satisfaction. As a result, during this period, we significantly increased revenue and profitability over the past five years.The biggest challenge our business has faced this year that we did not anticipate: The biggest challenge has been in identifying and hiring talented engineers and construction managers for our growing backlog of projects. We have continued to focus on providing internships to University of Hawaii College of Engineering students, participating in UH career fairs, and ongoing recruiting of local professionals.The toughest challenge facing our business: The impact of federal spending cuts will have a serious impact on our federal book of business. This includes especially our Department of Defense project opportunities.How our competition has changed: We continue to face increased competition from the large national or international firms that have established a presence in Hawaii and that are actively pursuing local project opportunities with federal and local governments. – Michael Matsumoto

How our company has changed since it came out of the Great Recession: We were fortunate enough to have experienced growth right through the dip, which says much about our service and the strength of the solar industry. The biggest challenge our business has faced this year that we did not anticipate: We have run into unexpected regulatory and policy risk, all of which comes with the territory of being part of a growing industry. The biggest challenge facing Hawaii’s large businesses: Being able to recruit qualified individuals to fill open positions. There is not a large enough pool of candidates who bring with them the experience of working within a larger organization here in the Islands and we find ourselves needing to look outside of our communities to recruit qualified individuals with the right training experience and education to fill positions. The most-qualified candidates bring with them a diverse professional background where they have gained experience learning from the various organizations that they have worked for and are familiar with best-in-class business practices.The toughest challenge facing our business: Our business, like many others, is influenced by policy matters that are influenced by politics. The policy can be great, and drive true strategic value for the state, but that can all get messed up by political maneuvering and power plays. Our company’s biggest opportunity: We are well-positioned for international growth into the U.S. Mainland and Asia. In late 2011 we opened three Mainland offices. How our competition has changed: The competition grew exponentially as residents and businesses became more interested in solar adoption. Will 2013 be better, worse or about the same for our company compared to 2012? Better. We expect continued growth from a more-diverse customer base and believe that the interest in solar will only gain in speed. How we turn disgruntled employees into productive workers: We always make an effort to thoroughly screen our candidates to be sure that we have found the right applicant for the job who will fit not only the position, but into the culture of our organization. When the situation does occur, we try to work with the employee to find out where she or he can best succeed within the organization, bring value to the company, and achieve personal satisfaction in the work being done. When possible, we give employees the opportunity to try new things that might be outside of their comfort zone. But in the end, if the employee cannot find personal and professional satisfaction, we understand when they leave. Sometimes it’s just not a fit, and in those cases it shouldn’t be forced. –Alex Tiller

BEST IN SMALL BUSINESS FINALISTS (Fewer than 40 full-time employees)

Bishop & Co. Inc.

Staffing and recruiting firm

Owner and President: Judy Bishop

Address: 841 Bishop St., Suite 1614, Honolulu, HI 96813

Phone: (808) 839-4844

Email: jbishop@bishopco.net

How our company has changed since it came out of the Great Recession: Well, it’s a lot bigger now! We’ve been really busy and growing nonstop since late 2010. We did no layoffs during 2008-2010, but didn’t replace staff who moved on. We cut every cost we could. We never stopped paying attention to the basics, though. And I think it’s paid off.While I feel we still do mostly the basics the same way — that is, with passion, caring, high standards and ethics — the big changes are probably in the tools we use, the technology, which enables us to do more with less. Also, I believe my staff has seen high times, a crash, survival, and high times returned. I think they have learned a lot — learned things about survival in business that I learned during worse time in the early 1980s in Louisiana when the oil industry [my customers were as important to Louisiana as tourism to Hawaii] just about quit drilling and my four businesses suffered much, much more than we have suffered through this recent Great Recession. Resiliency and confidence in doing the basics as well as you can, all the time, will keep you whole.Our company’s biggest opportunity: I think our biggest opportunity lies in expanding our business with the federal government. About two years ago, we became certified by the SBA as an 8(a) company: a small business, which is also woman-owned and disadvantaged. After receiving the 8(a) designation, which often gives you an edge on federal contracts, you have to really market yourself to the various government agencies, including the Department of Defense, and you must sell your company to the many contracting officers. It is a demanding exercise, to say the least, but we’re hoping that if we put in the time and effort, that it will be very lucrative — ultimately.Why small businesses aren’t hiring more: As a recruiter, I’ve witnessed firsthand the unique nature of Hawaii’s upturn in business, but without the volume of hiring that is expected. By the way, this is not unique to Hawaii. Nor is it unique to small business.Although we are insanely busy sourcing talent for our clients to hire, the numbers of new hires are lower than the economists and the politicians are hoping for.But, just as most of the manufacturing jobs lost in the U.S. to overseas factories will never return, so goes many of the other jobs that were found to be unnecessary when businesses were forced to take a hard look at their operations during the recent Great Recession.Businesses learned how to do more with less and they will continue to operate that way for the foreseeable future. They now hire for much more value for their money; they look for more hard and soft skills, more broad thinking, not siloed, more analytical and judgment skills, often skills that are very hard to find. One of the reasons businesses aren’t hiring more people is just that the skills they want are very hard to find, especially here where we haven’t developed that kind of work force. We’ve created great small businessmen and women and great leaders at the helm of our large companies, but for the most part we’ve created a work force of service staff — from hospitality, housekeeping and restaurant help to retail sales clerks — and of course skilled tradesmen, carpenters, etc. But that midlevel supervisor or project manager doesn’t always have the skills that are now needed most for businesses to grow and compete in a global marketplace.– Judy Bishop

How our company has changed since it came out of the Great Recession: Actually, we formed FSC Architects during the Great Recession in early 2010. Family, friends and colleagues all thought we were nuts, but in trusting our instincts we felt it was the right thing to do, inhaled deeply and took a giant leap of faith.Our company’s biggest opportunity: To spread our company model worldwide. This is not to be assumed to mean a desire to grow a large company. Quite the contrary, as we desire to find discerning clients committed to high quality that have unique projects where we believe our hands-on approach can craft something more meaningful and therefore more valuable.The biggest challenge facing Hawaii’s small businesses: That the value of hiring local is not lost on the corporatization of the world.How our competition has changed: Not all that much. However, we do find it important to point out the difference between perceived and actual competition.Why small businesses aren’t hiring more: Don’t really know, but my hunch is that it is a general lack of confidence in the economy. As the realities of the past decade have settled in I don’t think people are going to be as optimistic about the economy as, say, banks were of loaning money in the past. I think the new business mantra is more about asking what is sustainable.Our top social media tool and how we use it to grow our business: We have invested significantly in our website but we actually find some more traditional marketing tools more relevant and successful than, say, Twitter. We have produced a high-quality hardback book of our built and current projects that clients really appreciate and that they pass around to others. We try not to just follow social media trends because they are trendy, but to really see what works best for us.How we achieve great results with a limited budget: By having a passion and sense of commitment and responsibility for what you are doing.–James Freeman

How our company has changed since it came out of the Great Recession: Hawaii’s leading industry is tourism, which continues to be strong and is actually growing. Our major area of expertise is the visitor market and, as a result, our business is growing.Our company’s biggest opportunity: Resurgence of the Japanese visitor market and strength of the Japanese yen have brought more business to our clients. In addition, the emerging Chinese and reemerging Korean visitor market are promising for our clients.The biggest challenge facing Hawaii’s small businesses: There are no major tax incentives for small businesses outside of technology and green-energy industries.How our competition has changed: Instead of focusing on competing without competition, we are focusing on working harder, smarter and rising above our competition.Why small businesses aren’t hiring more: Technology [IT and mobile devices] is helping our existing staff do more in less time. Thanks to technology, what used to take two to three people a few days to complete can now be done by one person in one day.Our top social media tool and how we use it to grow our business: Tweeting, blogging and social media in general help us promote and increase public awareness of our clients’ businesses to more people more quickly.How we achieve great results with a limited budget: Hard work, smarter direction, maximizing trade and extensive connectivity.What has helped our business this year that we didn’t foresee being a benefit: Increased word-of-mouth referrals, new business openings and new projects from existing clients.–Masako Nashimoto Luttrell

How our company has changed since it came out of the Great Recession: We were able to expand the size of our restaurant, doubling the size and capacity and increasing revenue by about 25 percent over the previous year. Our company’s biggest opportunity: Building on the success of sharing an authentic Cuban experience to this community where our primary customers are local Honolulu residents who seek new and different experiences. We’ve proven this in two markets outside of Cuban populations and feel that we have a solid example of success and platform for expansion to other markets and categories of the food industry like packaged foods.The biggest challenge facing Hawaii’s small businesses: Labor regulations are unforgiving. How our competition has changed: More bistro-type upper-casual dining choices exist today in Honolulu than six years ago when we opened. Competition has increased.How we achieve great results with a limited budget: Consistency.–Jesus Puerto

How our company has changed since it came out of the Great Recession: We have never experienced any type of recession in our eight years. We can only attribute that do our daily motto, which is “Every day is a great day and every day is a great money day!” Every year our profits wonderfully increase. We are always expanding the variety of inventory knowing that someone will want it. The change that we experience is a continual positive expansion in all areas of our business.Our company’s biggest opportunity: Now that we are Kauai’s only bookstore, our biggest opportunity is to fill the demand for more books, which is why we are preparing for the opening of our second bookstore. The biggest challenge facing Hawaii’s small businesses: Keeping up with customer demand. Hawaii is growing and the needs of its residents, and visitors, are growing. In our type of business, people are always looking for a variety of subjects, and we strive to cover the gamut, and that in itself keeps it fun and exciting for the business and our customers.How our competition has changed: We ourselves have never subscribed to the idea of competition. Each business has something different to offer, even if they have the same or similar type of product, and therefore we see us as part of a large business unit that is here to provide for the customers’ needs. For instance, when we don’t have a book a customer wants, we will call the other book sources to see if they do have it and then send the customer to them. Over the years, the other book sources have done the same to us, and ultimately we are doing what all businesses are supposed to do: help the customers find what they are looking for. Why small businesses aren’t hiring more: A small business is usually started through a personal passion and everyone involved is passionate about the product and usually wears many hats, so in the beginning there is no need to hire. It is only when the demand becomes more than what can be handled is when there is any reason to hire employees who are there only because they are getting paid. It is then that the company becomes something different and with the right management it becomes something better. And as it grows, employees become an essential part of the company.Our top social media tool and how we use it to grow our business: Facebook. We use it for sale announcements, to let folks know about local or visiting authors, events that we are throwing/sponsoring, or events that we are mutually supporting.How we achieve great results with a limited budget: Ever since our business began, we have never operated with a budget. We still don’t. We simply purchase what we need and the customers come in to buy it. If there is a larger purchase, let’s say more shelves or lighting, we may purchase it through payments. We don’t wait until we have the money if it is something that we can make our business grow. What has helped our business this year that we didn’t foresee being a benefit: We have been pleasantly surprised by how much electronic books have increased our “real book” sales. Also, reopening our store on Saturdays. In the past it had not really worked well for us, but since Borders closed and customers kept asking us if we were open on the weekend, we realized it was time to fill that need. As it turns out, that day covers most of our weekly expenses. It’s like a bonus day for us now. – Ed and Cynthia Justus

How running a nonprofit in Hawaii is different today from five years ago: Three areas stand out in how operations have changed somewhat in the past five years. First, the funding has suffered with changes in the economy, particularly for a new nonprofit that can’t fall back on an established endowment. Second, the media landscape continues to evolve, with less “traditional” media outlets and an increase in online media offerings. Whereas 10 years ago it was fairly easy to get a story in one of the papers or on the 6 o’clock news, today it is more difficult; there are fewer large players and many more smaller, diversified outlets. Third, and similarly, the increase in social media and the burgeoning glut of information and issues clamoring for attention make engagement more challenging. Getting your message to rise above the noise and to engage the community on your issue effectively takes more strategy.How the concept of charitable giving has changed: More philanthropists are bringing a business or entrepreneurial approach to giving. They are more calculated and selective. They want to understand the return on their investments, what the organization’s business plan is, and how they plan to catalyze change to achieve their mission. There is also an increasing recognition among traditional foundations that simply granting for programs or projects isn’t enough to support the organization’s mission. They must also invest in capacity building and infrastructure to properly serve their beneficiaries.How we measure success: For our organization, whose mission is to end the use of fossil fuel, the overarching metrics of success are the quantity of fossil fuel imports and the increase in clean energy and efficiency. We also look at our impact in helping to enact new energy policy, participation in our clean-energy programs, and number of individuals reached through our outreach and education activities. Blue Planet’s personal connection to Hawaii’s community aims to cultivate a new energy culture, one that values clean, local, sustainable energy solutions, and as we see people begin to practice this new culture we consider that success.Traits we look for in a good board member: Board members should be the biggest advocates of the organization and the mission. They are your organization’s evangelists. Ideally, a board member brings a toolbox of experience, strong community networks, a positive attitude, and the ability to think strategically about the direction and initiatives of the organization. A checkbook also helps.My advice for nonprofits that are struggling to generate consistent financial support or sustain strong volunteer leadership: Gaining financial support: Focus on an area in which your organization has a real niche, something your program(s) have achieved successfully where other organizations have fallen short. When seeking funding be sure to tell the story of your success using clear documentation [photos, video, testimonials], what the measurable outcomes are, and how they contribute to the bigger mission that the funders also share. Make sure the potential funders or grant givers understand that you will apply your expertise/model to implement a new program in order to replicate the success.Sustaining volunteers: Volunteers are seeking meaningful experiences to participate in something bigger than themselves. They are also likely looking for social experiences and the opportunity to work with others on a common mission. Providing such opportunities to satisfy these interests is key. Simple logistics also matter tremendously. Create a well-organized and structured volunteer program that makes it easy for your staff to know exactly when volunteers will be available and what projects they will work on. How we keep businesses interested in giving to us: We show them how their involvement will make something great possible. We also demonstrate the direct value that achievement of our organization’s mission will have on their business.How we have incorporated social media into our business strategies: Social media has been a great mechanism for soliciting informal feedback and keeping our finger on the pulse of public opinion on specific news and events. We can monitor user engagement and comments to gauge support or opposition, as well as measure the level of interest people have about various issues or projects we’re pursuing. It’s also a great way to give public recognition to our partners, our friends and supporters, and folks who are doing things that contribute to our shared mission. –Jeffrey Mikulina

How running a nonprofit in Hawaii is different today from five years ago: Five years ago we were experimenting, and the verdict was still out on the impact we would make on our neighborhood. Now Chinatown is a tourist destination and there is no argument; we have made a positive impact by gathering creative energy. Business follows creative people, and people are more creative when they are working together.How the concept of charitable giving has changed: The charitable spirit is looking for a deeper local impact to strengthen community and economy. Creativity is now the primary requirement for both. We provide different stages of creative training from after-school programs for teens [Chinatown Art Corps] to living and/or working at Chinatown Artists Lofts, to free rein in the gallery and performance space, and starting your own creative business at The ARTS at Marks Garage, to giving back to the cycle through our 1001 friends program.How we measure success: We are aiming for creative self-reliance. We offer environments for self-actualization. We have teenagers making their own films here. They are not waiting around for Netflix; they can make their own. We have opportunities to sing, act, write, to reach your creative potential and use a part of you that doesn’t get out much. That’s good for the community, and good for our economy.The most successful change we made in the past decade: Sitting around waiting to sell paintings, you can despair that there is not much of an art scene. When we switched our focus to creating an arts scene together, the work became a lot more gratifying. With the success of First Friday it now seems perfectly normal to have hundreds of 20-somethings hanging out in a gallery on a Friday night.– Rich Richardson

How running a nonprofit in Hawaii is different today from five years ago: As author Jim Collins says, “Welcome to the rest of our lives.” The world changed forever with the economic collapse of 2008-2009 and rapid acceleration in the use of digital technology. The job of nonprofit leaders became one of reenvisioning and developing new skill sets in their organization. These are times when there’s no one Big Solution to challenges. So nonprofits experiment with initiatives on a small scale in order to contain failure. We learn more from imperfect results than success. And we plant critical seeds of new growth.One of the most welcome changes of the last five years is the online opportunities to get to know our viewers/supporters. We’ve gone from a one-way TV screen to multiple screens, and more conversations and feedback and engagement. How the concept of charitable giving has changed: People want to make sure their money is truly doing good. Nonprofits need to be able to demonstrate their value. Sometimes gifts are given in parts, conditional upon results. I think we’ll see more of this with baby boomers who want to watch their gift being stewarded rather than waiting until they pass to leave a gift in their will. And we’re seeing it with younger people, digital natives, who want to see progressive thinking and metrics. Generations coming of age are less interested in “membership.” They want to help but don’t necessarily want to commit. Traits we look for in a good board member: We look for people from diverse backgrounds who understand Hawaii’s richness, nuances and challenges, who want to help others maximize their individual potential, and who are interested in pulling together resources — people, ideas, partnerships, money — to advance the organization.My advice for nonprofits that are struggling to generate consistent financial support or sustain strong volunteer leadership: We certainly don’t have everything figured out; it’s a process. We’d like to extend our admiration and offer encouragement to all who are taking care of community treasures: Keep going. Don’t give up. Hold onto your values and aspirations and be open to necessary change. Accept that you’re traveling a bumpy road and celebrate every milestone. The most successful change we made in the past decade: We have a proud legacy, but legacy thinking isn’t working well in the 21st century. Our board of directors gave the green light to do something that had never been done. PBS Hawaii created the nation’s first statewide student news network, Hiki No, meaning “can do.” Not quite two years old, Hiki No is going strong. We’re engaged with 80 schools, including students from Niihau, in fostering skills in journalism and digital media. Young people share stories, creatively and responsibly, on-air and online. How we keep businesses interested in giving to us: Our business support team works to get to know the concerns of a business and structure a partnership that addresses both organizations’ goals. We’re fortunate that we’re able to give sponsors thanks and recognition in an uncluttered television environment.How we have incorporated social media into our business strategies: We treat social media as another platform in our multiplatform media organization. We use social media to let our viewers/supporters know of timely developments, give video previews, share behind-the-scenes moments, engage in conversations, ask for feedback, and truly listen.– Leslie Wilcox

YMCA of Honolulu

Part of national organization focusing on youth development, health and wellness and social responsibility

President and CEO: Michael Broderick

Address: 1441 Pali Highway, Honolulu, HI 96813

Phone: (808) 531-3558

Email: MBroderick@ymcahonolulu.org

How running a nonprofit in Hawaii is different today from five years ago: Today, as Hawaii’s communities face increasingly critical health and social issues, nonprofits must work harder than ever to stay relevant and intentional in their focus, programs and services.Whereas in the past, Y’s may have been viewed as just gym-and-swim facilities, the YMCA of Honolulu has evolved into much more, focusing on total wellness in spirit, mind and body. In response to alarming rises in adult and childhood obesity and related chronic diseases, challenges in keeping children and teens safe and thriving, financial hardships and struggling families, the YMCA of Honolulu has expanded its programs and philanthropy.The Y’s “Membership for All” program provides financial assistance to individuals and families to ensure they have access to Y programs regardless of their ability to pay. Y youth programs are much more than just child care. Through Y leadership and academic-enrichment programs such as mentoring, youth in government and college preparation, teens have an opportunity to envision and pursue a positive future and take an active role in strengthening their community.Philanthropy, now more than ever, is a critical part of the Y’s ability to serve our communities. Last year, the Y provided more than $1 million in financial aid to kids, teens, adults and families in Hawaii to ensure they have an opportunity to have healthier and more balanced lives.How the concept of charitable giving has changed: News available 24/7 and social media have resulted in potential donors who are much more passionate and knowledgeable about the causes they choose to support. Today’s donors are generous, decisive and intentional in their giving. Through their donations and support, donors expect results that are measurable and impactful. How we measure success: Statistics are always impressive. Currently, the YMCA of Honolulu provides programs and services through nine Y branches located throughout Oahu, impacting more than 100,000 people a year. However in the end, a true measure of success is answering the simple question: “Are we changing lives?” Traits we look for in a good board member: We have a metropolitan board overseeing the entire association, as well as branch advisory boards serving at each of our nine Y branches. We look for and have board members who are committed to and have the heart and passion for our Y mission of strengthening the foundation of our community. Our board members are diverse in their backgrounds, talents and experience — much like the communities we serve. My advice for nonprofits that are struggling to generate consistent financial support or sustain strong volunteer leadership: Engaging, building and strengthening relationships is at the forefront of everything we do. Whether it’s with our members, the individuals and families we serve, our volunteers or donors, we are always intentional in our thoughts, plans and actions to ensure we are doing all we can to meet their needs. Our strong relationships have resulted in great success in our programs and services and, with that, continued support from our donors and volunteers.The most successful change we made in the past decade: It was NOT to change our cause of strengthening the foundation of our community, but to change the way we communicate our impact. In 2010, for the first time in 43 years, the YMCA nationally and locally unveiled a new brand strategy to increase understanding of the impact the Y has in communities. Unveiling a new, more forward-looking logo is just one example that reflected the vibrancy and diversity of the organization and provided a framework that easily defined the Y’s focus on three core areas: youth development, healthy living and social responsibility. How we keep businesses interested in giving to us: We serve everyone — all ages, genders, backgrounds, ethnicities and means. Our mission is also a living mission, focusing on the most pressing health and social needs of our communities. As a result, our cause is relevant and compelling to businesses that are passionate about making a positive impact and reaching specific target markets. Businesses that support our mission through donations are our partners. We believe partnerships should be mutually beneficial. So we are always looking for ways we can support our business partners, whether it’s through offering corporate membership and worksite health programs for their employees, unique team building retreats or ensuring they are appreciated and see the positive impact their support has made.How we have incorporated social media into our business strategies: Basic social media technologies such as Facebook, Twitter and YouTube have provided opportunities for our Y branches across Oahu to join in conversations with their communities in interactive and cost-effective ways. These channels combined with a dynamic website, monthly e-newsletter and our recently launched mobile app keep us current, accessible and responsive to our members, donors and the communities we serve. – Michael Broderick

COMMUNITY SPIRIT FINALISTS

How we created a culture of community spirit: Community spirit is ingrained in the people and culture of Hawaii. Most companies in Hawaii care deeply about the communities they serve as a reflection of the ohana culture we live in — helping each other comes naturally. At American Savings Bank, part of our mission statement is to “be actively involved in our community.” Creating a culture of community spirit starts at the top and it is important that our management team leads by an example and communicates our commitment of community service to all employees. Our executives are involved in community programs. Plus, we foster and celebrate our community culture at all levels of the organization by offering focused opportunities for employees to give back to the community. Our Seeds of Service employee volunteer program, Kahiau employee-giving campaign, and financial literacy workshops for students are just some of the programs we’ve developed to engage employees in community outreach. Being involved in the community is a commitment you make that becomes part of your DNA — it doesn’t have a beginning and an end. My advice for companies that struggle to build such a culture: Incorporate a message of community involvement in your recruitment process and provide focused opportunities for employees to participate in the community. Determine what causes or types of community activities you want to engage in and survey your employees to see what they’re already passionate about in the process. Focus your efforts in those areas that align with your business, employee passions and community needs rather than trying to do too much with too little. Plus, it’s easier and more effective to rally the troops around a few key causes. Develop strong partnerships with the community organizations whose missions align with your focus areas, combining charitable giving with employee volunteerism. Finally, show appreciation to your employees for participating in community activities and be diligent in communicating the great work your company and employees do internally and externally.Why it is important for our business to be involved in the community: As a local bank, American is an integral part of Hawaii’s communities. We help customers create and grow businesses, send kids to college, buy homes, invest for the future and manage their daily finances. We are involved at every stage of the life cycle of the people of Hawaii. Every part of our business impacts community growth and vice versa. How we encourage employees to become involved in community service: At American, every employee is encouraged to participate in our Seeds of Service employee volunteer program. Our employees have volunteered more than 10,000 hours painting schools, teaching financial literacy classes to our keiki and various other projects to help us build stronger communities. We keep our Seeds of Service program top-of-mind by publishing articles on our Intranet, talking about it at new-hire orientation and in our training classes. Additionally, we are about to kick off our annual employee-giving campaign, Kahiau, in which employees can direct their charitable dollars to any of our participating nonprofit partners. The total amount given by employees at the end of the campaign is matched by the bank. How we decide which causes to support: To make a greater impact in our communities, we have identified three focus areas for our community development charitable giving and volunteer efforts: building stronger communities [empowering people and strengthening families to achieve self-sufficiency and foster sustainable communities]; education [promoting educational excellence with an emphasis on financial literacy], and economic development [promoting growth, entrepreneurship and enhancing the economic climate in Hawaii]. How we measure success in developing a spirit of community service: Employee participation is a good gauge of the level of community spirit. The more employees you have that willingly participate in company community activities, the sooner you reach that tipping point where community spirit is infectious and spreads like wildfire throughout the company. Ultimately, however, success is really measured by your ability to make a significant, meaningful difference in people’s lives. How the concept of corporate giving has changed and how it will continue to evolve: Employees and companies will continue to be more and more engaged in corporate giving. Rather than simply writing checks, people want to be involved in programs that benefit others in alignment with their philosophy. Monetary contributions are still vital; however, the human connection that comes from volunteering is what truly sustains a spirit of community giving. Example of how community service paid off for our company: Recently, we held an employee team contest to build landmarks or icons of Hawaii out of Legos. After the contest, we donated the winning entries plus 15,000 individual Legos to Kapiolani Health Foundation, one of our nonprofit partners in our Kahiau employee-giving program, for use in their children’s playroom and Sex Abuse Treatment Center. A few days after the winning Lego creations, which included a replica of Tamashiro’s Market, were displayed in the Kapiolani Medical Center cafeteria, we received a note from the hospital, which said:“I just wanted to thank you again for bringing in the Lego display Friday. Yesterday, a little girl who has been staying in the hospital for quite some time asked the playroom staff if she could have the Tamashiro Lego display when she goes home. She was so excited to tell her mom and the other patients that was her pink Legos. I just wanted to thank you again and let you know how much something like this can brighten a child’s day when they are going through so much.”– Rich Wacker

How we created a culture of community spirit: Community spirit has always been a major part of BAE Systems’ operating philosophy and we are committed to supporting communities where our employees live and work. Being the largest global defense contractor present in Hawaii, we are conscious of the adage, “To whom much is given, much is expected.” We concentrate on military and education initiatives and events as our primary areas of focus. My advice for companies that struggle to build such a culture: Consistency of message and presence at community events by employees who represent the community and BAE Systems is key to building a strong community investment culture. It is not easy, though many in Hawaii do it well. We are fortunate to have Mainland resources we can tap into to support our efforts.My suggestion for newer companies is to partner with reputable brand-established companies that can help you get started. Ask your employees to be your emissaries to deliver your message of community support and involvement. Appoint a company champion who will link the employees, the corporate leadership and community in the effort to support impactful community events. Why it is important for our business to be involved in the community: BAE Systems realizes the importance of supporting the communities where its employees live and work. What a corporation does for its community is usually a benefit for its employees and a reflection of their commitment. How we encourage employees to become involved in community service: Leadership advocacy is critical to employee participation. A corporate activities committee with diverse representation will help community service involvement. The event should be fun and develop corporate and community pride in the event to get employee buy-in.How we decide which causes to support: BAE Systems focuses its philanthropy on organizations and projects that support the U.S. armed forces and their families, health and wellness and education, with a specific focus on the future work force and the engagement of young people in science, engineering, technology and math [STEM]. How we measure success in developing a spirit of community service: Participation by numbers of employees and their willingness to be a part of the initiative/event. Buzz on the street, and awards from community champions like PBN also validate the success of our program.How the concept of corporate giving has changed and how will it continue to evolve: Philanthropic budgets are under pressure due to the economy and the current business environment. Rather than sole sponsorships, partnering opportunities with aligned corporate partners is our way of continuing to provide impactful initiatives/events with limited funding. Demonstrating the value of corporate philanthropy to senior management is a continuing education process.Example of how community service paid off for our company: Because of our past involvement in organizing many major military parades, BAE Systems was called upon to organize and support the Congressional Medal of Honor parade and dinner reception for the famed Hawaii Nisei Veterans of the 442nd RCT and the 100th BN, developing a much closer bond and association with a small but revered and very influential group in Hawaii. – Alan Hayashi

How we created a culture of community spirit: The culture was developed from the top. When the leadership believes in the programs/causes/agencies’ purpose, this permeates quickly throughout the organization. Oceanic has a very long history of being a part of the community and giving back. This began with Don Carroll, who led this company for over 35 years. This culture has been nurtured during those years and continues to be a part of all the employees’ DNA.My advice for companies that struggle to build such a culture: The company’s leaders need to personally spend the time and resources toward these programs, which employees will see as commitment to their beliefs. Also, allowing participation by employees in various programs/events will support that commitment toward the community.Why it is important for our business to be involved in the community: Our employees and families are also a part of the communities where they live and work. It is Oceanic’s obligation to support our employees, who then in turn support the communities. Without people in the community, Oceanic will not be a successful organization.How we encourage employees to become involved in community service: Because this commitment is so ingrained in our employees for so many years, it doesn’t take much to have our employees involved. We recently volunteered to do a clean-up effort in Mayor Wright Housing where nearly 100 employees participated. We had a drive that collected 24 pallets of food, clothing and toys for the children of the homeless on the North Shore. Some of our field groups collect and feed the homeless groups on their own and on a monthly basis collect canned goods for the Hawaii Food Bank. Our Neighbor Island locations are deeply committed to their communities and participate in many events throughout the year. How we decide which causes to support: Currently, there is a committee that reviews all requests for support from Oceanic. They try to determine the greatest needs of the community by how passionate our employees are for the cause. Another employee committee, called the Community Team Works, schedules various projects such as the Mayor Wright Housing project and solicit volunteers for these events. It usually starts with a project that an employee may be passionate about, who then takes the lead on that project. The committee will then organize what is needed including rounding up the volunteer bodies.How we measure success in developing a spirit of community service: A gauge of success is whether we have the support of our employees and the community they belong to. When we look for volunteers, our employees usually show up in masses to help. One thing that is evident: When the call for help goes out, our employees are there!How the concept of corporate giving has changed and how it will continue to evolve: From the corporate standpoint, there are certain initiatives that the company may be focused on which are usually one or two major areas. We will always support those initiatives. However, from the local perspective, we will have a many-pointed view that may include more areas of concern that affect how we operate locally. Since we live and work in these communities, we will and have supported projects that are near and dear to us in Hawaii. In fact, each island has a few unique projects that they like to support, which is encouraged. Example of how community service paid off for our company: Our payday is when we see the gratitude of a young child or families that are unable to have their next meal without us. It becomes very dear to us when one of our employees benefits from our community service with an organization such as a hospice or the Boys and Girls Club. This becomes a clear reminder to us why we need to continue and should never forget our role in our community.–Bob Barlow

How we created a culture of community spirit at our company: With every employee, Sunetric instills in them the philosophy that started the company: that you should leave the world a better place than when you found it. Whenever possible, Sunetric blends its community leadership and business expertise into many of its activities, all the while embodying the spirit of aloha. Sunetric is always seeking new ways to give back to the community and truly takes the time to listen to the employees about what causes matter to them. It’s essential to us to foster an environment where our employees can share their values and voice their opinions. My advice for companies that struggle to build such a culture: As with all aspects of business, a company should develop a well-thought-out strategy when it comes to community involvement. The most important thing is to be honest while identifying what pillars of service they want to focus on, because creating a culture around community service is not something that can be done successfully unless it comes from a genuine place. Employee involvement during this strategy phase is also a good idea, so the company can measure how successful participation and execution will actually be. We feel that asking people for their opinion is the first step in influencing a culture. Why it is important for our business to be involved in the community: Our staff benefits from the company’s community involvement because they can be proud of working for a company that cares about the community they live in and are raising their children in. This is of utmost importance to Sunetric. Furthermore, Sunetric will continue to support the community through various community outreach initiatives because we believe it’s our obligation to share success with our neighbors. Installing solar is a long-term investment for homeowners and businesses, and being a solar company advocating a thriving environment and economy in Hawaii is a long-term investment for us. Example of how community service paid off for our company: Now in its second year, Sunetric launched Hawaii’s first green job training program with nonprofit organization Kupu in January 2011 to train under-resourced young adults to install photovoltaic panels as part of Kupu’s pilot Urban Corps program. Urban Corps is a free job training and service learning program that seeks to equip corps members with the experiences, education, training, and support needed to become productive members of society, with a heart to serve and positively impact the community around them. Throughout the pilot program, Sunetric donated materials and staff time to conduct weekly labs introducing corps members to a range of job opportunities in the solar industry, from initial sales to actual installations. After corps members gained foundational skills, they joined Sunetric field crews to assist with residential and commercial installations. This valuable on-the-job training has prepared the young men to become solar installers, helping to develop local talent in a growing industry, while providing a social benefit to the recipients of training. Some of these individuals have moved on to become Sunetric employees. – Alex Tiller

How we created a culture of community spirit at our company: From the beginning, we knew that the most important thing we could do both as a business and as residents in the town was to fill a need for the community. In fact, most of what we know today about business has been from the generosity of the community passing along their knowledge and experience, some even giving us bookcases, or computers, or taking the time to show us how to improve the store and/or our sales. Our advice for companies that struggle to build such a culture: The best advice we can give is simply interact. Introduce yourself. Get to know your neighbors, your community, as many types of businesses as possible, your community’s spiritual leaders, your government representatives and join your chamber of commerce and attend their functions as well as volunteer or join service organizations. Find out what needs are in the community and work to fill those needs, whether it be through the product your business provides or by helping the community in other ways such as philanthropy or lending a helping hand. We have found that it is really reciprocal. The more we give to the community, the more the community takes care of us. It’s such an amazing thing.Why it is important for our business to be involved in the community: We are a bookstore. Our business is designed to serve a need in the community, and in our thinking that comes in many ways. We see the money that comes into our store as a means to provide for our community in as many ways as we can. The community knows that their money is going to good things. They are not only getting a product they want, but that they are helping to make the service we do for the community possible. How cool is that?How we encourage employees to become involved in community service: Other than ourselves, we have interns who help us with our store. Most of them already are involved in some sort of volunteer or community service. How we decide which causes to support: In addition to the many activities and projects we are involved in, we do donate often to a variety of nonprofits and organizations. We pretty much just let people know that if they are looking for donations, support, donated gift certificates, etc., to support their cause to just come by and ask. How we measure success in developing a spirit of community service: Our measurement of success is by how much either we see the changes that have been brought, or by how many people either attend an event or tell us how much they appreciate what we do. How the concept of corporate giving has changed and how it will continue to evolve: We know that more and more people in all areas of life are seeing how interconnected we all are, that when we give or contribute, even if it is just a little, there is a long-term benefit. Example of how community service paid off for our company: We have been Lions and Rotary Club members and also Salvation Army volunteers and with other community organizations. I, Ed, also serve on our county’s Charter Review Commission. We throw many free large public events and provide several school scholarships. There is so much more that we are very quiet about. Because of all this, and more, we have gotten to know many people in our community and they feel like that by supporting us they are supporting all the things we do for the community. To us, the fact that we can give back to our community through our business is the “payoff”. We were given an opportunity to start a business at no cost for the first month, and because of that generosity, we give it back on a daily basis. – Ed and Cynthia Justus

INNOVATIVE COMPANY OF THE YEAR FINALISTS

Bump Networks

Custom computer programming services, website and software development company

Co-founder: Crystal Kryeziu

Address: 89 Hookele St., Suite 201, Kahului, HI 96732

Phone: (808) 893-2400

Email: accounting@bumpnetworks.com

How we respond when something new doesn’t work out as planned: We never give up! The ability to pivot and try again in a new direction is something that we pride ourselves on being able to do quickly whenever necessary. What’s critically important is not just the ability to pivot, but the ability to assess the situation and determine the root of the problem. Why it didn’t work is frankly more important than being ready to change. If you must pivot, understand the root cause and pivot wisely, not blindly.How we let our employees know it’s sometimes OK to fail: It might sound odd, but we actually plan for failure. Our team is taught to embrace and acknowledge the risks of a project, so that if something doesn’t go as planned, we have the time, intelligence, and ability to pivot and right the ship. In essence, the only way to fail is to give up. And we never give up! We support each other as a team, and when that time comes, we all pitch in to help out.How we measure success: We measure our success by our clients’ success. Plain and simple.In what ways it is harder to keep taking risks after we’ve had success: It’s so tempting to stick with what you know when it has worked in the past. But innovation truly is the secret to success in technology. The technology industry moves so quickly that you simply cannot sit back and repeat, or you’ll find yourself out of business in no time. You must continue to stretch your boundaries, and never shy away from a challenge. How the concept of innovation has changed and how it will continue to evolve: The term “innovation” used to infer a radical new idea or product. Today, especially with mobile technologies and the continued influx of new devices on the market, I think everyone is getting used to constant innovation. The speed with which we innovate is increasing, and each innovation gives birth to multiple new innovations. This, factored with new technologies that encourage global participation and communication, will continue this trend and set a new pace that then redefines how we react to innovations. What I see my business doing differently five years from now: Mobile and tablets are the way of the future. Five years from now, websites will be an afterthought and customized user experiences will likely reign supreme. While we’re already making this adjustment toward mobile, it will be even more highly concentrated and the focus will be on delivering speed, power and connectivity in ways never imagined before. We’re still hoping for augmented reality to become a daily way of life. Fingers crossed!–Crystal Kryeziu

How we created a culture of innovation: Four Seasons Resorts Lanai embarked on our innovative journey in February 2012. The goal was to create distance between the competition through innovating the guest product and overall experience, all the while adding value and maintaining brand integrity. In theory, this goal was relatively achievable; however, to successfully execute and maintain the initiative, it required a shift in culture and mind-set amongst all employees.All employees needed to adapt to this thinking, but most importantly believe in the team, to offer a cohesive experience. To execute the process, the resort introduced the campaign with a select group of innovation ambassadors, who are also various managers around the resort. The innovation ambassadors held fun and engaging training and brainstorm sessions throughout the resort. From the bellman to the beach attendant, sales managers to restaurant server, the spirit of creativity and innovation was ignited and brought the team together. Each department had a valuable innovative idea to contribute. The collective creativity and knowledge among the employees generated an overwhelming response to enhance the guest experience. My advice for companies that struggle to build such a culture: The best advice is to recognize the changing climate and adapt to your company’s needs. For most businesses, social media has revolutionized the way business is conducted and it is here to stay. Four Seasons Resorts Lanai has embraced the digital age, both for the guest experience and communication, but also communicating internally, thus allowing all employees to have a voice and forum to actively participate and be stewards of innovation. How we respond when something new doesn’t work out as planned: Four Seasons Resorts Lanai strategically pilots innovation ideas by testing and refining to measure the value of the improved guest experience. Many ideas are often developed as a result of this practice. How we measure success: Our innovation journey has enabled Four Seasons Resorts Lanai to explore new market opportunities through strategic, yet thoughtful, practices. The initiative is about the team, and how each employee can contribute to the success of the resorts by delivering thought-provoking ideas to anticipate the needs of the guest and travel industry. Our success is measured by masterfully creating a memorable guest experience, along with creating an exceptional employee experience to continue to drive our culture. –Tom Roelens

Hawaii Pacific DEEG

Medical practice

Medical Director: Michael Russo

Address: 320 Ward Ave., Suite 101, Honolulu, HI 96814

Phone: (808) 294-3332

Email: Michael.Russo@Doctor.com

How we created a culture of innovation: I am essentially a one-person company. I’m a brain doctor [neurologist] with three office staff to help me care for my patients. I was in the Army for the past 30-plus years, with the last four years at Tripler, so I’ve learned well what does not work. When I retired from the Army in December 2011 I wanted to heal our soldiers returning from war with brain injuries, heal children who have smashed their heads in an auto accident, and heal elderly who may be developing memory problems. I wanted to apply a novel technique to treating mind-brain disorders, a technique that was unavailable here in Hawaii prior to Hawaii Pacific DEEG. The idea subserving the technique is that the mind’s activity, as measured by electrical potentials at the scalp, can be recorded and interpreted, that abnormalities in the electrical output of the mind reflect abnormalities in the structure of the brain, and that if a patient has at least a minimum degree of cognitive capability and wants to heal, that the patient can actually change the structure of his brain by directing the forces of his mind towards the desired healthier state. The DEEG is the technology that captures thoughts in progress.I opened the company on Jan. 1 of this year and got the DEEG machine in July. Once the DEEG machine was installed, it took no time at all to start the diagnosing and healing. My advice for companies that struggle to build a culture: First, hire individuals with fully functional brains. As brains are well-hidden inside our head and behind our eyes, identifying individuals with healthy and generative minds is not easy, and may take time. When individuals with good brains have been identified, form the staff into small groups, where any one person from that group can generate an idea and be comfortable sharing that idea within the small group. The key is trying to find individuals with well-built brains — they can remain well hidden. How I respond when something new doesn’t work out as planned: I respond by sleeping on it, and trying again the next day, from the new perspective that sleep has given me. How I let my employees know it’s sometimes OK to fail: I tell them that failure allows them the opportunity to learn a lesson, and from learning that lesson one can avoid a similar failure in the future. How I measure success: By the improving health and well-being of my patients. By the smile on their faces when they leave my office. By their bringing their father, or mother, or child to me. By the number of papayas or mangos piled on my desk at the end of the day.How the concept of innovation has changed and how it will continue to evolve: Innovation is bringing a new idea, a new concept, a new approach to an issue. Healing the brain is difficult, and most practitioners have only limited success. Patients want more; they want to be more like the person they were prior to the accident or event that caused their brain damage. New ways to identify the locations of and extent of brain injuries are critical if we are to improve patient outcomes. What I see my business doing differently five years from now: Five years from now I would like to see a DEEG on every island, and neurofeedback available to all who wish to utilize its powerful healing abilities. I’d like to see Hawaii Pacific DEEG’s diagnostic and healing paradigm available to everyone.– Michael Russo

How we created a culture of innovation: When we purchased Pacific Allied Products Ltd. in 2003, we immediately looked at potential growth opportunities. Considering that over 97 percent of all products are shipped to Hawaii, we researched products that could be manufactured here in Hawaii for Hawaii utilizing the technology we already had in place for our EPS foam manufacturing. We looked at various polymer packaging products and selected the PET [polyethylene terephthalate] beverage-packaging industry as an option. We met with the two largest beverage companies in Hawaii, Pepsico and Coca Cola Enterprises, and made our proposal for packaging innovation options with improvements in sustainability, cost reduction and job creation in mind. We started by purchasing two used blow mold machines and began to blow some of the companies’ carbonated soda drinks containers. After a year, both companies added more container sizes for us to blow and we had to purchase more high-volume machines.We faced many challenges to get where we are today — the largest having to do with the work force. Because there are few manufacturing plants in Hawaii, there aren’t as many employees with skill sets in this area. Creating a culture within the work force for high quality, high production output has been a monumental but rewarding challenge.My advice for companies that struggle to build a culture: Standards and training. It’s important to set standards in all areas, from developing job descriptions and training curriculum for each position to creating standard operations and safety procedures in each area to communicating expectations.Training is also key to creating a culture of leadership, setting direction, and ensuring results. We conduct management training, supervisor and lead training, equipment manufacturers’ training and leadership training.How we respond when something new doesn’t work out as planned: We evaluate the plan, look at the cause of the failure and take action in developing a new plan for success. It usually comes down to manpower, processes or procedures.How we let our employees know it’s sometimes OK to fail: No one is perfect. If an employee fails at something, we look at the cause and what needs to be changed to overcome it. We then train and help in the process and re-evaluate for success.How we measure success: We have quality, production, safety and process standards. We also have department and team goals that measure success in addition to personal goals and achievements for all employees. In what ways it is harder to keep taking risks after we’ve had success: If the company takes financial risks and is successful, it is easier to look at and take on more risks.How the concept of innovation has changed and how it will continue to evolve: Innovation is a way of life. New resins are being developed to help the environment and new processes are always coming on the scene. Innovation is and will be a way of life for us.What I see my business doing differently five years from now: Growing in volume in the private label co-packing business with new innovative packaging options. Demand for clean drinking water and other health drinks will continue to grow as will demand for products from Hawaii. –Bernie Coleman

How we created a culture of innovation: Our culture of innovation was really part of our pioneering DNA. We were incubated from DataHouse, which foresaw the transformational impact that technology would have on the way everyone does business. We selected health care because of its high service component, importance to our local and national economy, and resilience to economic downturns. Our name Praxis, in Latin, actually means turning knowledge into application or continuous improvement.We affirm our innovative culture by promoting a shared understanding that we do things well, but there is always a better way, by making the technology resources available for people to innovate, and by celebrating our successes along the way. We have been intentional about building this culture from our inception in 1992.My advice for companies that struggle to build such a culture: Self-cannibalize. Seriously, I think it’s better to lead innovation rather than to compete or defend against it. I would create agile, scalable platforms or business units for select leaders to diffuse innovation within a larger, slower-moving organization. To use an ancient analogy, it’s difficult to pour new wine into old wineskins; similarly, it’s easier to innovate from outside an existing organization than to dramatically change an existing culture.How we respond when something new doesn’t work out as planned: We assess, learn, pivot and try again.How we let our employees know it’s sometimes OK to fail: By not only affirming it, but also having leaders admit and showcase their own mistakes, from the CEO on down.How we measure success: Our corporate profitability, company valuation, and the great relationships with employees, customers and partners. Also, the impact we are having in the local and global community.In what ways it is harder to keep taking risks after we’ve had success: From my perspective, it’s harder to take risks as you get older. You start looking more at consequences rather than what’s possible. The way to counter this is to embrace, equip and release your next-generation leaders and let them stand on your shoulders. How the concept of innovation has changed and how it will continue to evolve: I am not an expert here, but innovation is much more rapid and agile now, and it gets more so each year. The “Plan-Do-Study-Act” cycle has been getting shorter and shorter.What I see my business doing differently five years from now: Five years from now, I see TeamPraxis demonstrating the fact that we can build a globally competitive company in Hawaii by attracting the best and the brightest employees. We are going to enhance the “Made in Hawaii” brand by showing that Hawaii produces more than just great coffee; Hawaii also incubates transformative intellectual property because of our very akamai people who overflow with a spirit of aloha. Similar to the milestone of runners breaking the 4-minute mile, we’re certain that as we prove this can be done in Hawaii, many other organizations will follow.–Creighton Arita